Cindy David - What Every Canadian Needs to Know About Retirement

Cindy David What Every Canadian Must Know About Life Insurance

Growing your Business

GROWING YOUR BUSINESS

It’s often said that the key to success is surrounding yourself with good people. So how do you attract – and keep – the best and the brightest? Offering superior employee benefits is a great way to stay competitive. It’s not surprising that employees tend to treat customers the same way they are treated – since your employees take care of your customers, it’s wise to take care of them.

Health and Dental Benefits

Offering a comprehensive benefits plan is generally a wise business decision because it can help you retain great employees. Additionally, providing these benefits can also reduce costly mistakes due to on-the-job staff stress. You can customize your plans to suit both the needs of your staff and your budget. These plans may include:

Life insurance

Short and long-term disability insurance

Critical illness insurance

Dental and extended health benefits

Confidential Employee Assistance Programs (access to counselling)

Specialized benefits that are important to employees (i.e. pet insurance)

As the employer, you’d typically pay between 50% and 100% of plan costs, with employees paying the remainder. Generally, any premiums you pay for your employees plans are tax-deductible.

If your company is smaller or your budget is a concern, you can further customize the benefits you offer through the use of Health and Welfare Trust plans, which allow you to predetermine the cost.

Group Retirement Plans
A Group RRSP is a collection of individual RRSPs that employees can contribute to through regular payroll deductions using pre-tax dollars. By setting up a Group RRSP program, you can:

Offer staff a valuable and desirable benefit to help to attract and retain employees

Enhance your reputation as a leading, progressive employer

Support your organizational goals and employee incentive philosophy

Choose not to fund the plan (unlike pension plans, which are governed by pension legislation)

Generate a tax-deductible expense for the business

Group Deferred Profit Sharing Plans (DPSPs)

A Group DPSP is a further benefit that allows you to share your annual profit with your employees while allowing flexibility in the contributions that you make to their future retirement. Through the implementation of a DPSP, you and your employees will not only gain from all the benefits of a Group RRSP, but you will offer a further benefit that incents employees to consider and contribute to the total profit of your company. DPSPs can be customized to increase profit share each year that your employee is with you and provides many of the tax-sheltering benefits of an RRSP. Additionally, as employer contributions are based on company profit, you are “on the hook” for a contribution when the company has the funds to provide it.

Taking Care of Your Future

Cindy David Financial Group is a boutique estate planning firm serving families and businesses in British Columbia. We help you to build and protect wealth, retire on your own terms, and give back to your community in a meaningful way. We also specialize in business succession and continuation, helping owners to transfer their business interests in a smooth and tax-efficient manner.